Ex-Hydrogen Technology Executives Sentenced for HYDRO Token Price Manipulation

cryptonews.com:

In a groundbreaking case, former executives of Hydrogen Technology Corporation have been sentenced to prison for manipulating the price of the company’s HYDRO token.

At the same time, this case marks the first time a federal criminal trial has classified a cryptocurrency as a security and recognized price manipulation as securities fraud, setting a significant precedent in regulating digital assets.

A federal judge in Florida has sentenced Michael Kane, the former CEO of Hydrogen Technology Corporation, to nearly four years in prison after he pleaded guilty to securities fraud related to a crypto price manipulation scheme.

Kane received a 45-month sentence, while Shane Hampton, the former Head of Financial Engineering at Hydrogen, was sentenced to 35 months for similar offences.

This case is pivotal as the $HYDRO token was officially recognized as an investment contract-qualifying security under SEC guidelines. Principal Deputy Assistant Attorney General Nicole Argentieri stated,

“For the first time, a jury in a federal criminal trial found that a cryptocurrency was a security and that manipulating cryptocurrency prices was securities fraud.”

She emphasized that the sentences should serve as a warning about the DOJ’s commitment to protecting the integrity of cryptocurrency markets.

“This prosecution and the sentences imposed today should serve as a warning: The Criminal Division will not hesitate to use all tools at its disposal — including the federal securities laws — to protect the integrity of cryptocurrency markets.”

The U.S. Securities and Exchange Commission (SEC) had previously filed a lawsuit against Kane and Hydrogen Technology, alleging that Kane used the firm’s market maker to manipulate the volume